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Standard Operating Procedures (SOP) manual for Finance Department

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Financial management is one of the most important aspects in business. Larger organisations will have more specialised finance teams with many levels of management. In a smaller business, it may be the owner or a small team who have broader roles and greater responsibility. In order to start up or even run a successful business, you will need excellent knowledge in financial management.

So what exactly is this form of management and why is it important?Financial management refers to the strategic planning, organising, directing, and controlling of financial undertakings in an organisation or an institute. It also includes applying management principles to the financial assets of an organisation, while also playing an important part in fiscal management. Take a look at the objectives involved:

  •  Maintaining enough supply of funds for the organisation;
  • Ensuring shareholders of the organisation to get good returns on their investment;
  •  Optimum and efficient utilization of funds;
  •  Creating real and safe investment opportunities to invest in.

we will explore the typical responsibilities of finance department in the rest of this article
1. SOP-FN-01 : Receipt of Bills
2. SOP-FN-02 : Entry of Bill in the Books of Accounts
3. SOP-FN-03 : Preparation of Approval note for payment
4. SOP-FN-04 : Issue of Cheques
5. SOP-FN-05 : Dispatch of Cheques
6. SOP-FN-06 : Cash Payments
7. SOP-FN-07 : Payroll
8. SOP-FN-08 : Staff Advances & Loan
9. SOP-FN-09 : Fixed Asset Register
10. SOP-FN-10 : TDS
11. SOP-FN-11 : Service Tax
12. SOP-FN-12 : ESIC
13. SOP-FN-13 : PF
14. SOP-FN-14 : Employee Insurance
15. SOP-FN-15 : Bank Payment
16. SOP-FN-16 : Tours & Travel Statements
17. SOP-FN-17 : Compliance of Audit Queries
18. SOP-FN-18 : Cash payments and Journal Vouchers
19. SOP-FN-19 : Responsibilities of Finance Manager
20. SOP-FN-20 : Responsibilities of Accounts Officer
21. SOP-FN-21 : Responsibilities of Accountant / Cashier
22. SOP-FN-22 : Value Added Tax
23. SOP-FN-23 : Insurance Requirements
24. SOP-FN-24 : Various Governing Acts
25. SOP-FN-25 : Intellectual Property Rights
26. SOP-FN-26 : Cost Reduction Initiatives
27. SOP-FN-27 : Professional Tax
28. SOP-FN-28 : Asset Management
29. SOP-FN-29 : Accounting Metrics
30. SOP-FN-30 : Collection Policies
31. SOP-FN-31 : Inventory Management
32. SOP-FN-32 : Annual Budgeting
33. SOP-FN-33 : Tracking Credit Card Auto-Payments

Tags: SOP

Written by Venkadesh Narayanan

Venkadesh is a Mechanical Engineer and an MBA with 30 years of experience in the domains of supply chain management, business analysis, new product development, business plan and standard operating procedures. He is currently working as Principal Consultant at Fhyzics Business Consultants. He is also serving as President, PDMA-India (an Indian affiliate of PDMA, USA) and Recognised Instructor of APICS, USA and CIPS, UK. He is a former member of Indian Civil Services (IRAS). Fhyzics offers consulting, certification, and executive development programs in the domains of supply chain management, business analysis and new product development.

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